UK markets closed
  • FTSE 100

    7,109.95
    +65.92 (+0.94%)
     
  • FTSE 250

    22,756.33
    +218.44 (+0.97%)
     
  • AIM

    1,190.74
    +9.12 (+0.77%)
     
  • GBP/EUR

    1.1799
    +0.0023 (+0.20%)
     
  • GBP/USD

    1.3292
    -0.0046 (-0.34%)
     
  • BTC-GBP

    43,174.23
    +2,263.38 (+5.53%)
     
  • CMC Crypto 200

    1,442.69
    +13.76 (+0.96%)
     
  • S&P 500

    4,650.42
    +55.80 (+1.21%)
     
  • DOW

    35,086.71
    +187.37 (+0.54%)
     
  • CRUDE OIL

    70.81
    +2.66 (+3.90%)
     
  • GOLD FUTURES

    1,786.20
    -1.90 (-0.11%)
     
  • NIKKEI 225

    28,283.92
    -467.70 (-1.63%)
     
  • HANG SENG

    23,852.24
    -228.28 (-0.95%)
     
  • DAX

    15,280.86
    +23.82 (+0.16%)
     
  • CAC 40

    6,776.25
    +36.52 (+0.54%)
     

Tenaris Q3 core profits triple with strong margins, shares jump

  • Oops!
    Something went wrong.
    Please try again later.
·1-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

(Reuters) - Core profits at steel pipe giant Tenaris more than tripled in the July-September period, helped by a 73% jump in sales and higher selling prices, boosting confidence about the final quarter and pushing shares up more than 4%.

Tenaris, which makes seamless and welded steel pipes for oil and gas exploration activities, on Thursday posted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $379 million for the three months to end-September, up 254% from the previous year.

Margins at the Luxembourg-based group stood at 21.6% in the quarter due to higher selling prices and as an improved industrial performance and higher absorption of fixed costs helped offset soaring raw material and energy prices. That compares with a margin of 19.7% in the preceding three months and 10.6% in the third quarter of 2020.

Tenaris said it expected sales to keep growing in the last quarter, again led by North America, where the market has absorbed excess inventories and prices are rising, while margins are expected to "remain close to the current level".

"The results and outlook are higher than expected and point to a gradual and continuous continued recovery of the business," broker Equita said in a note.

Milan-listed shares in the pipe maker were up 4.5% by 0845 GMT, making it the leader on Milan's blue-chip index and hitting levels last seen in January last year.

"We expect (the outlook) to drive Q4 consensus EBITDA upgrades of 15-20%," Jefferies analysts said in a note.

The group added it would pay an interim dividend of $0.13 per share.

(Reporting by Federica Urso, editing by Agnieszka Flak)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting